Focus groups, surveys, field tests, interviews, and observation are examples of primary market research. Primary market research lets you investigate an issue of specific interest to your business, get feedback about your website, assess demand for a proposed service, gauge response to various packaging options, find out how much consumers will pay for a new product, and more.
In addition, primary research is usually based on statistical methodologies that involve sampling as little as 1 percent of a target market. This tiny sample can give an accurate representation of a particular market. The downside of professionally conducted primary market research is that it can be expensive — several thousand dollars or more. Fortunately, a growing number of online tools allow you to conduct primary research such as surveys yourself at very little cost.
Savvy entrepreneurs do secondary research first and then conduct primary research. For example, the owner of a cupcake shop would want to know all about a neighborhood before opening a new store there. Using information gleaned from secondary sources, the owner can uncover all kinds of demographic information, including detailed income data and spending patterns.
Secondary research lays the groundwork, while primary research fills in the gaps. By using both types of market research, small business owners get a well-rounded view of their markets.
Sign up for practical, real-world solutions from successful business owners delivered to your inbox each Saturday morning. Social media data is a new source of secondary data. For example, the New York Times collected Twitter traffic during the Super Bowl and produced this stunning visualization of comments throughout the game.
It is increasingly possible to obtain behavioral data from secondary sources, which can be more powerful and reliable than self-reported data via surveys and focus groups. If you have a moment, check it out. Primary Market Research Primary research is research that is conducted by you, or someone you pay to do original research on your behalf.
You might choose to gather this data by running a survey, interviewing people, observing behavior, or by using some other market research method. I hope this tutorial on the differences between primary and secondary research has been helpful. If I missed something or if you have something to add, please do so with a comment below.
Primary vs Secondary Market Research. Previous Post Next Post. You may also like 3D Virtual Shop Research. An Overview of Market Research Methods. Survey Design Best Practices: How to Write a Good Questionnaire.
This type of research can prove useful both in terms of primary market research and secondary market research. Some of the common examples of quantitative research include exit surveys, questionnaires, on-site fieldwork and the shopping bag survey.
Types of Secondary Market Research Methods. The type of market research information gathered defines it as either quantitative or qualitative. Quantitative Method of Market Research; The research conducted to gather numerical data is defined as quantitative method of market research and it includes the following: Surveys conducted to assert customer refund frequency. Figures about sales; Sales .
Secondary research enables an organization to get the utmost information about the market. But even then it may prove as a challenging task for a business to unearth the information that the business actually wants. For gaining first knowledge about the market, secondary research is the best. Secondary research uses outside information assembled by government agencies, industry and trade associations, labor unions, media sources, chambers of commerce, and so on. It's usually published in pamphlets, newsletters, trade publications, magazines, and newspapers.
Earlypad has made a list of types and methods of secondary market research to help the startups and SMEs to understand the prominence of Market Research. Primary research usually costs more and often takes longer to conduct than secondary research, but it gives conclusive results. Secondary research is a type of research that has already been compiled, gathered, organized and published by others.